Democratic presidential candidate Elizabeth Warren Thursday called for a big tax increase on large corporations.
The Massachusetts senator unveiled a plan to impose a 7 percent surcharge on corporations making more than $100 million, the second major tax proposal of her campaign.
The tax is larger than it may appear because Warren would apply it to an altogether new tax base: She would impose it on the earnings that publicly traded companies report to investors. That is based on a different set of accounting rules than when firms do their taxes.
Warren said it will end the ability of companies to report profits to Wall Street while simultaneously telling the IRS they have no taxable income.
“It will make our biggest and most profitable companies pay more and ensure that none of them can ever make billions and pay zero taxes again,” she said.
She predicted it would raise at least $1 trillion over a decade, which would increase projected corporate tax receipts by about 30 percent. It would amount to not only rescinding much of Republicans’ recent corporate tax cut but would likely leave some companies paying more than they did before the Tax Cuts and Jobs Act